Financial Market Research and Analysis

Our analysts have their fingers on the pulse of the world's financial market news.

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US stocks leave European peers behind
The US stock rally rejuvenated in New York yesterday. The Dow Jones and Nasdaq renewed record, as the US dollar index climbed to a fresh fourteen year high of 103.65.

Bank stocks (+1.10%) lead the Dow Jones higher. Goldman Sachs (+1.68%) and JP Morgan (+1.29%) added 35 points to the index. Higher yields hint at improved margins and revenues for the US banks. As the multi-year, low rate pressure is finally coming to an end, the US banks have certainly more to recuperate.

The Dow Jones came 13 points close to the 20’000 mark. The year-end appetite could give the bulls a hand for a renewed push toward the 20’000 resistance. Stops are eyed above. The Dow is set for a flat to positive open.

FTSE made a soft start to the trading day. Financials and mining stocks have hard time consolidating gains, while industrials (+0.36%) and technology stocks (+0.48%) are struggling to secure a positive session, although the bears are challenging the overall enthusiasm. As it appears, even a softer pound is not sufficient to wet investors’ appetite in London today.

Energy stocks are losing ground as Libya based oil rally fades amid the country’s major oil fields, El Feel and Sharara, reopened and are expected to pump 270’000 barrels per day within the next three months.

Monte dei Paschi fails big at fund raising

Monte dei Paschi fell drastically short in its efforts to raise 5 billion euros to be saved. Instead, Paschi’s debt-for-equity swap raised only 500 million euros. The weak appetite rings the alarm bell as the year-end deadline approaches at a threatening speed.

Failure to save the bank could aggressively shake up the Italian and the European banking sector.

Italian banks need 52 billion euros to be rescued, more than twice the 20 billion euro package proposed by the government on Monday.

Banking stocks in Italy are expected to remain under pressure until the country comes up with a realistic set of solutions.

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